Kellogg Company and Singapore-based Wilmar International Limited have formed a 50/50 joint venture to manufacture, sell and distribute cereal and snacks in China.
Wilmar's wholly-owned subsidiary in China, Yihai Kerry Investments Co., Ltd., will participate in the joint venture. Wilmar will contribute infrastructure, supply chain scale, an extensive sales and distribution network in China, and local Chinamarket expertise. Kellogg will contribute its brands and products. The joint venture will use the Kellogg's and Pringles brands.
China is projected to become the world's lagest food and beverage market within five years, and its snack-food market is projected to reach $12 billion by the end of 2012, up 44% from 2008.
The joint venture company will be headquartered in Shanghai, China.
Its launch is subject to regulatory approvals by the Chinese government and anti-trust approvals by the U.S. government.